President Bola Tinubu, on Wednesday, April 3, 2024, signed into law the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Bill, 2024. The Act seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and the youth.
The repealed Student Loan Act, 2023, had some challenges bordering on governance and management, purpose of the loans, eligibility criteria for applicants, method of application, repayment provisions, and recovery of the loans.
Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024 was meant to sufficiently resolve the challenges highlighted above
The Nigerian Education Loan Fund (NELFUND) is critical for Nigerian students, offering interest-free loans to cover tuition and upkeep for tertiary education.
It reduces financial barriers for low-income families, prevents dropouts, promotes equal access to education, and helps students focus on academics, fostering a knowledge-driven economy and long-term skill development.
NELFUND is one of the social intervention schemes introduced by President Bola Tinubu to ensure that students from low-income backgrounds pursue higher education without financial constraints .
The loans are interest-free, easing the financial burden on students and their families.
NELFUND pays tuition fees directly to the institutions, reducing the risk of misuse.
The students also receive a monthly stipend for living expenses and daily transportation.
The initiative has reduced the number of students who drop out from tertiary institutions due to inability to pay fees. This has brought smiles to the faces of the students and their parents.
The loan repayment starts two years after the completion of the National Youth Service Corps (NYSC) programme, allowing beneficiaries enough time to secure employment.
The repayment arrangement is designed to ensure the sustainability of the programme while preventing students from being burdened with loan repayments before they become financially stable.
NELFUND covers students in public universities, polytechnics, colleges of education, and vocational training centers..
NELFUND opened its application portal on May 24, 2024, and since then, 1,734,985 students have submitted applications seeking financial assistance for their education. Of this number, more than 1.16
million applicants have already received payments under the scheme.
The Nigerian Education Loan Fund (NELFUND) has disbursed more than N206 billion in student loans to support tertiary education across the country since the programme was launched.
The loan programme has reached students in about 270 tertiary institutions nationwide
A breakdown of the disbursement shows that N128.84 billion was paid directly to higher institutions to cover the tuition fees of beneficiaries. In addition, N77.45 billion was disbursed to students as upkeep allowances to help meet their living expenses while studying..
The NELFUND programme has so far been a remarkable success story as it has assisted over a million students in public tertiary institutions, to continue their academic pursuit in spite of the poor financial status of their parents.
President Bola Tinubu deserves commendation and support for this initiative aimed at guaranteeing the tertiary education of the children of the poor.
ABOUT THE AUTHOR
Mustapha Isah is former President of the Nigerian Guild of Editors.
